AU endorses controversial EU trade pact
2009-09-29 Kamau, Macharia (The Standard Online Edition, Nairobi)
Resources > By Topic > REGIONAL TRADE ARRANGEMENTS > EPA
The African Union (AU) has expressed its support of the proposed new trade agreement between Africa and Europe, saying that it would improve the investment climate and significantly increase the amount of foreign direct investment (FDI) on the continent.
African Union Commission Deputy Chairperson Erastus Mwencha said that the arrangement being negotiated under the European Union (EU) sponsored Economic Partnership Agreements (EPAs) could radically change the investment and business climate that has been viewed as hostile by both domestic and foreign investors.
The EU is currently negotiating with 77 African, Caribbean and Pacific (ACP) countries clustered into six economic blocs in a move to boost regional integration and trade with Europe.
“Businesses need predictability, stability and an efficient regulatory infrastructure to thrive. To this end, the Economic Partnership Agreements being negotiated between the EU and our regional economic communities should create a stable and predictable trade and investment climate”, Mwencha said.
Speaking on Monday at the opening of the third EU-Africa Business Forum, Mwencha urged private sector players to support the initiative.
“I ask the private sector to take keen interest in the EPA process as the same will have far reaching consequences on their business”, he said.
The AU’s position is in spite of sustained campaigns by civil society organisations across the continent opposing the EPAs.
Kenya, negotiating an EPA under the East African Community (EAC), is yet to sign a comprehensive agreement although the deadline expired in July this year.
The civil society led by the Kenya Human Rights Commission (KHRC) in the country has argued that the EPAs are not fundamentally concerned about Africa’s development, but are rather designed to further the geo-economic interests of European corporations and capital.
According to Mwencha, it is necessary to increase the level of public-private partnerships because it is among the best tools available to accelerate reforms.
“Experience has shown that partnerships offer the best way to make progress. In fact, given the scale of challenges, the need for collective action through public private-partnership approaches is critical... they demonstrate that it is increasingly possible to deliver successful economic and development outcomes”, he said.
Kenyan Deputy Prime Minister Musalia Mudavadi officially opened the two-day forum being attended by over 270 business leaders and government officials from Africa and Europe.
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